What is Numeraire Coin (NMR) – Beginner-Friendly Guide

Introduction

Numerai is a new kind of hedge fund, which allows any data scientist to build machine learning models on our data, and submit predictions to control the capital in our hedge fund.

Automatic learning algorithms have solved major problems in recent years, such as the recognition of handwritten numbers in the MNIST data set.

When the data set became available in 1998, the machine learning algorithms were still very imprecise.

The stock exchange is now to be developed further and the machine learning efficiency is to be improved in the long term.

Numeraire Coin wants everyone to have the opportunity to support and build on this project.

Unlike all of these ICOs launching lately and really damaging ETH prices Numeraire launched public without any ICO just a chance for you to jump in like everyone else and grab a piece of the pie.

Here is an explainer video from the CEO himself:

What is Numeraire Coin?

NMR is used for staking when making predictions, which is also called “Proof of Intelligence” and is a first of it’s kind.

Numerai sends scientists a proprietary data set in encrypted form that is not human readable or actionable. I.e. the scientists cannot turn around and use the data insights they find to place bets on the market themselves (only the hedge fund can when it decrypts the data set)

Scientists compete to create models whose predictions perform well in the real world, and the top 100 in the competitions receive a USD and NMR reward paid by the hedge fund.

If the user is confident in his modell, he will stake some of his Numeraire, which causes the Numeraire smart contract to hold that sum for a certain period during which it judges the model’s performance on new data. If the predictions indeed performed well, he will earn some bitcoin, plus get his Numeraire back. Those whose predictions were less accurate have their Numeraire destroyed.

Numeraire is an ERC20 Ethereum coin. These coins are called intelligent contracts executed on the Ethereum blockchain.

The Ethereum-Smart Treaty stipulates that there will never be more than 21 million Numeraire coins on the market.

After the initial distribution, the smart contract will form a fixed number of numeraire each week until the maximum is reached.

What is this special kind of cryptocurrency used for?

Numerai has distributed Numeraire—1,000,000 tokens in all—to 12,000 participating scientists. The higher the scientists sit on the leaderboard, the more Numeraire they receive. But it’s not really a currency they can use to pay for stuff. It’s a way of betting that their machine learning models will do well on the live market. If their trades succeed, they get their Numeraire back as well as a payment in bitcoin—a kind of dividend. If their trades go bust, the company destroys their Numeraire, and they don’t get paid.

Numerai caps its payouts in a U.S. dollar-denominated amount, currently $15,000 a month with the top user able to earn $54,000 a year, but the company uses bitcoin as the payment mechanism to preserve anonymity and to solve the logistical nightmare of making payments to foreign countries.

Best and safest option to store your coins is to download an official coin wallet and store it on a hardware wallet (if it is supported) – our recommendation is just go andbuy Ledger Nano S orTrezor Wallet orKeepKey, those are the safest options.

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